Nvidia’s (NASDAQ: NVDA) CEO Jensen Huang recently made a noteworthy statement about quantum computing that caught the market’s attention and led to a drop in stocks in this sector. Despite this, I believe that by 2025, quantum computing will become a significant trend for investors interested in artificial intelligence (AI).

What did Huang say about quantum computing?

During a panel at this year’s CES conference in Las Vegas, Huang shared his insights on the potential applications of quantum computing. While he expressed optimism about its future, he also noted that it might take up to 20 years before the technology is deemed “very useful.”

Why his remarks are important

The following chart shows how the prices of several notable quantum computing stocks have fluctuated. In recent months, Rigetti Computing, Quantum Computing, D-Wave Quantum, and IonQ have all seen significant increases in their stock prices.

RGTI data by YCharts.

However, all four companies began experiencing significant declines in their stock prices around the same time earlier this month. I find the timing of Huang’s public statements to coincide closely with the drop in quantum computing stock prices.

These developments highlight a couple of key points. Firstly, the recent surge in quantum computing stocks does not automatically make them a smart investment choice. It is important to recognize that these companies are still in their infancy—they are just beginning to generate revenue and are likely to continue operating at a loss for the foreseeable future.

Secondly, prominent figures on Wall Street and in corporate leadership can sometimes influence market trends with their statements. While Huang’s remarks on quantum computing were not negative, they reminded investors that the field represents a long-term potential rather than an immediate opportunity.

Consequently, those who invested in quantum computing stocks during November and December may now find themselves in a less than favorable position.

Should you consider investing in quantum computing?

Considering Huang’s acknowledgment of the technology’s future potential to tackle complex issues, the essential question arises: Should quantum computing have a place in your AI investment portfolio? In my view, there are a few avenues to explore. The most straightforward method is to purchase specific quantum computing stocks.

Alternatively, a more diversified approach could involve investing in a quantum computing-themed exchange-traded fund (ETF), like the Defiance Quantum ETF. ETFs tend to lessen the impact of stock market volatility since they consist of multiple stocks. However, it’s worth noting that thematic investments like this can be riskier than investing in broader market funds, as they still focus on a specific sector.

I believe that the most sensible way to approach investing in quantum computing is through shares of large, well-established technology companies that are exploring quantum computing as part of their broader AI strategies. Companies such as IBM, Alphabet, and Microsoft are actively investing in quantum computing but are not solely relying on this technology for their futures. Additionally, companies involved in developing quantum chips—such as Nvidia or Advanced Micro Devices—could also be strong candidates for investment.

Ultimately, I share Huang’s belief in the significant potential of quantum computing. However, pinpointing the specific companies that will lead this trend remains a complex challenge, especially given that the technology is not yet ready for commercialization.

Suzanne Frey, an executive at Alphabet, serves on The Motley Fool’s board of directors. Adam Spatacco has holdings in Alphabet, Microsoft, and Nvidia. The Motley Fool has positions in and recommends Alphabet, International Business Machines, Microsoft, and Nvidia. The Motley Fool also recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. For a complete disclosure policy, visit their website.

The Motley Fool is a content partner of YSL News, providing financial news, analysis, and insights designed to help people manage their financial futures. Its content is produced independently from YSL News.

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